Scotland's Salmond: blocking pound will hurt UK

Stopping an independent Scotland from using the pound will hurt businesses in the rest of the UK, warned the country's 's first minister.

Alex Salmond, Scotland's first minister, hit back Monday at criticism from the U.K's main political parties over the Scottish Nationalist Party's (SNP) plans to retain the pound if Scotland achieves independence.

In a spirited defense Monday, Salmond warned that if plans for a currency union between the two countries was blocked, businesses across the UK would face increased "transaction costs" importing from and exporting to Scotland. Salmond added that the ban, which he dubbed a "George tax", could "run into many hundreds of millions of pounds."

"Scotland needs a stable currency, within a secure single market, so that Scottish companies have the best chance to grow and create jobs. Staying in an unstable currency union would have serious economic consequences" said John Cridland, CBI Director-General.

"With the three main UK political parties making it clear that keeping the pound after independence is not an option, it is maintaining the Union that offers the stability of sterling that businesses need."